FG to Support 500,000 MSMEs, 333,000 Artisans with 75bn Survival Fund – SMEDAN
NEWS DIGEST – Any moment from now, the Federal Government will commence a nationwide implementation of the ‘MSME Survival Fund’ and the ‘Guaranteed Off-Take Scheme’, says Dr. Dikko Umaru Radda.
He said the two MSMEs initiatives will help cushion the impact of the COVID-19 pandemic, while also boosting the economy by saving existing jobs and creating new job opportunities.
“The MSME Survival Fund is a conditional grant to support vulnerable micro and small enterprises in meeting their payroll obligations and safeguard jobs in the MSME sector. The scheme is estimated to save not less than 1.3 million jobs across the country, and specifically impact on over 35,000 individuals per state,” he added.
According to Dr Radda, who is the Director General (DG) of the Small and Medium Enterprises development Agency of Nigeria (SMEDAN), the fund which 60 billion naira has been earmarked for, will assist 500,000 vulnerable MSMEs in meeting payroll obligations of between N30,000 to N50,000 per employee, over three (3) months.
“Under the survival fund, we will provide free CAC business name registration for 250,000 new businesses. We shall also be supporting the survival of 100,000 businesses most affected by the COVID-19 pandemic with 50,000 each. The target beneficiaries are employees of MSMEs and self-employed individuals such as bus drivers, ride share drivers, mechanics, artisans, and plumbers, among others,” he said.
On the guaranteed off-take stimulus scheme, the SMEDAN boss, who is also the Chairman, Publicity and Logistics Sub Committee of National Steering Committee for the two initiatives, explained that the scheme will protect and sustain the income of vulnerable micro and small enterprises from the economic disruptions of the COVID-19 pandemic.
He added: “The main objective of this particular scheme is to boost production capabilities of small businesses with the view to ensuring that they remain in business. The duration of implementation will be same as the survival fund payroll support, while target beneficiaries are micro and small businesses registered in Nigeria.”
Dr. Radda, while disclosing that registration for both the survival fund and stimulus scheme will begin on 21st September 2020, advised prospective applicants to visit www.survivalfund.ng to apply.